LBMA Gold Sourcing Program Faces Grave Criticism

SEATTLE (Scrap Monster): Several advocacy groups have raised harsh criticism on the London Bullion Market Association’s (LBMA) responsible gold sourcing program. They alleged that the association has failed to deliver on its promise in ensuring that only responsibly-sourced, free of human rights abuses and conflict-free gold is traded worldwide. Furthermore, the five organizations led by Global Witness urged the European Union (EU) not to endorse LBMA.

In an open letter to LBMA, the organizations noted that the annual Responsible Sourcing Report 2020 does not provide adequate information on where gold is actually mined. Also, it offers no details on the incident review process.

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A number of specific cases earlier pointed out by the organizations continue to remain unanswered. Last year, they had pointed out that Swiss refiner Valcambi SA had bought large amounts of gold from Dubai-based Kaloti Precious Metals Group, which is alleged to have purchased conflict gold from Sudan. Also, it had raised concerns that Indian refiner MMTC-PAMP had processed gold from Tanzanian mines alleged for human rights violations.

Surprisingly, LBMA had ruled that both the above firms were fully compliant with its responsible sourcing standards.